Starting and building a business usually involves significant work. However, many entrepreneurs who have spent years growing their company fail to create a succession plan or exit strategy in the face of both expected and unexpected events.
Most find it easier to address the expected events like retirement because almost everyone hopes to retire at some point, and more importantly, enjoy it. However in order for business owners to fully protect themselves and their families, their exit strategy should also include provisions for unexpected events such as disability and untimely death. As a result, many succession plans include disability and life insurance options.
Succession planning is critical for the longevity of a firm and often must address the following issues:
Therefore, succession planning should provide the entrepreneur, or that person’s heirs, will be able to cash out at a fair value under certain circumstances. Otherwise, disagreements between the heirs of a deceased owner, or between the heirs and the employees, can result in a business failing. Our advisors help entrepreneurs prepare for the future and ensure their business will continue. Succession planning solutions can allow the business owner to protect their assets that have been accumulated after years of hard work and potentially provide an income stream into the future.8
8 Insurance services are provided by Woodforest Financial Services, Inc., which is not affiliated with RJFS.